COMMERCE

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COMMERCE 2018-04-05T11:39:47+00:00

COMMERCE

Business incorporates two kinds of exercises, viz., (I) exchange and (ii) helpers to exchange. Purchasing and offering of products is named as exchange. But there are a lot of activities that are required to facilitate the purchase and sale of goods. These are called services or auxiliaries to trade and include transport, banking, insurance, communication, advertisement, packaging and warehousing. Commerce, therefore, includes both, buying and selling of goods i.e., trade as well as auxiliaries such as transport, banking, etc. Commerce provides the necessary link between producers and consumers. It grasps every one of those exercises, which are essential for keeping up a free stream of products and enterprises. Thus, all activities involving the removal of hindrances in the process of exchange are included in commerce. The hindrances may be in respect of persons, place, time, risk, finance, etc. The obstruction of people is evacuated in terms of professional career along these lines making products accessible to the customers from the makers. Transport removes the hindrances of place by moving goods from the places of production to the markets for sale. Capacity and warehousing exercises evacuate the obstruction of time by encouraging holding of loads of merchandise to be sold as and when required. Goods held in stock as well as goods in course of transport are subject to the risk of loss or damage due to theft, fire, accidents, etc. Protection against these risks is provided by insurance of goods. Capital required to undertake the above activities is provided by banking and financing institutions.

 

 

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